The purpose of the proposed research is to examine the way in which race differences in home ownership arise over the life cycle. Among older whites, home ownership rates are very high regardless of income. However, among older blacks home ownership rates are lower at every level of income. Specific aims of the research include: (1) examining the effect of race, economic, and social characteristics on the relationship of life cycle events to housing tenure; and (2) examining changes in this process over time. Owning a home is an important element in the social and economic well-being of older persons. Ownership is associated with lower housing costs; and the equity older persons develop in their homes can be used to purchase entrance into retirement living options such as lifetime care facilities. It is also likely that owning a home provides the older person with a sense of permanence and security. The research will utilize the Panel Study of Income Dynamics in order to estimate race differences in the longitudinal effect of changes in life cycle characteristics such as family size on changes in housing tenure. The goals of the research are: (1) to provide information on race differences in home ownership among the future elderly; (2) to show the interconnectedness of events early and late in the life cycle; and (3) to provide information useful to the design of policies to reduce race differences in housing.